Trump’s Tariffs: Who Really Pays the Price?
Welcome, everyone. Today, I want to dive into a topic that’s been dominating the headlines—Trump’s tariffs on imports from Canada, Mexico, and China. There’s a lot of misinformation floating around, so I want to break this down in a way that’s clear, fact-based, and free from the usual media spin.
The Media Narrative vs. Reality
If you’ve been following the news, you’ll notice a pattern. Mainstream outlets are painting a very specific picture:
Trump’s tariffs will wreck the U.S. economy.
American consumers will see massive price hikes.
Canada and Mexico are innocent victims of U.S. aggression.
But as always, the real story is far more complex than the media would have you believe.
Canada’s Not-So-Innocent Tariffs
One of the biggest myths I’ve seen is that Canada has been a completely fair trading partner and that Trump’s tariffs are an unjustified attack. But here’s what many people don’t realise: Canada has been hitting U.S. goods with massive tariffs for years.
Here are some examples of tariffs Canada imposed on American products before Trump’s trade war:
Butter: 298% tariff
Peanut Butter: 295% tariff
Cheese: 245% tariff
Poultry: 238% tariff
Eggs: 163% tariff
Alcohol: 100% tariff
And yet, the media would have you believe that Trump is the one disrupting fair trade. The reality? The U.S. has simply been tolerating unfair practices for years, and now that the playing field is being leveled, Canada is acting like the victim.
Mexico’s Trade Advantage
Mexico, much like Canada, has benefited immensely from its trade relationship with the U.S.
80% of Mexico’s exports go to the U.S.
Mexico has imposed tariffs on U.S. steel, pork, and apples at 20-25%.
The U.S., by contrast, has had minimal tariffs on Mexican goods.
Again, when Trump moves to adjust this imbalance, the media jumps in with fearmongering. But the reality is simple: the U.S. has been playing by one set of rules, while everyone else has been playing by another.
The Real Impact of Tariffs
Now, let’s talk about who actually suffers in this trade war. Many assume that the U.S. will take the biggest hit, but my research shows a different picture.
Canada: By far, the hardest hit. With 75% of their exports going to the U.S., Canada relies heavily on American trade. Tariffs on steel, dairy, and energy will severely impact their economy.
Mexico: While less vulnerable than Canada, Mexico also depends on U.S. trade. The auto industry, agriculture, and electronics sectors will be particularly affected.
China: Only 17% of China’s exports go to the U.S., making them less vulnerable. However, their reliance on high-tech exports means certain sectors will feel the pain.
The U.S.: Short-term disruptions? Yes. But in the long term, domestic industries will ramp up production, creating jobs and economic growth.
What About Inflation?
One of the biggest talking points is that these tariffs will cause runaway inflation. This is misleading.
Inflation is primarily caused by an increase in the money supply, not trade policies. While tariffs may lead to some price increases in specific sectors, they do not cause broad inflation.
The real driver of inflation? The reckless money printing that took place during the pandemic, when 40% of all U.S. dollars in circulation were created in just two years. That’s what’s driving up prices—not tariffs.
Canada’s Energy Threats: An Empty Bluff
Trudeau has hinted at cutting off energy exports to the U.S. in retaliation. But here’s why that’s never going to happen:
Canada’s energy industry is drowning in debt—they need U.S. buyers.
The U.S. can ramp up domestic production if needed.
Blocking U.S. energy exports would devastate Canada’s own economy.
It’s all political posturing—nothing more.
The Bottom Line
So what’s really happening here? Trump’s tariffs are not about destroying economies—they’re about rebalancing trade.
Canada & Mexico were never innocent players.
Tariffs don’t cause inflation—reckless money printing does.
The biggest losers? Canada and Mexico—not the U.S.
Yes, there will be short-term pain, but the long-term gains for the U.S. economy far outweigh the risks.
The media won’t tell you this because they thrive on fear and misinformation. But I’m here to give you the facts.
If you want real economic analysis without the propaganda, make sure you’re subscribed to my newsletter, where I break down these issues in even more detail.
Let me know your thoughts in the comments—who do you think will win this trade war?